Sterling Tools Limited submitted an investor presentation for Q1FY27 ended 30th June 2026 to the National Stock Exchange of India Limited and BSE Limited pursuant to Regulation 30 read with Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Business Overview

The company operates through three main businesses:

  • STL (Standalone): The 2nd largest manufacturer of automotive fasteners in India with 3 manufacturing plants (Faridabad, Prithla, Bengaluru) and 1 wire drawing unit (Ballabhgarh).
  • Sterling E-Mobility (SEM): Full-spectrum powertrain and power electronics solutions provider for EV industry with technology centers in Faridabad and Bengaluru.
  • Sterling Tech-Mobility Limited (STML): Manufacturer of HVDC contactors and relays with a manufacturing plant in Bengaluru.

Q1FY27 Financial Performance (Standalone)

  • Total Income: ₹201.9 Crores, up 23.7% YoY (Q1FY26: ₹163.2 Crores)
  • Gross Profit: ₹127.9 Crores, up 29.2% YoY
  • Gross Profit Margin: 63.4% (Q1FY26: 60.7%)
  • EBITDA: ₹31.1 Crores, up 26.9% YoY
  • EBITDA Margin: 15.4% (Q1FY26: 15.0%)
  • Profit Before Tax: ₹22.0 Crores, up 47.8% YoY
  • Profit After Tax: ₹16.4 Crores, up 48.4% YoY
  • EPS: ₹4.51 (Q1FY26: ₹3.05)

Q1FY27 Financial Performance (Consolidated)

  • Total Income: ₹216.6 Crores, up 11.1% YoY
  • Adjusted EBITDA*: ₹26.0 Crores
  • Adjusted EBITDA Margin: 12.0%
  • Profit After Tax: ₹5.9 Crores, down 34.8% YoY
  • EPS: ₹1.61

*Adjusted EBITDA excludes ESOP expenses

Business Highlights and Updates

Management Commentary (Mr. Atul Aggarwal, Managing Director):

  • Strong momentum in core fasteners business driven by customer engagement and operational excellence
  • Healthy profitability maintained despite inflationary pressures from higher steel prices
  • Impact of higher steel prices expected to be mitigated through existing pass-through mechanism
  • Increased planned capital expenditure to nearly ₹80 crore during FY27 for fastener business growth
  • Company maintains strong balance sheet and net debt-free position

Sterling E-Mobility (SEM) Progress:

  • Transitioning beyond traditional MCU offerings to integrated 2-in-1, 3-in-1 and 4-in-1 power electronics solutions
  • Increasing traction in electric commercial vehicle segment
  • On-Board Charger (OBC) and multifunctional power electronics production lines on track for commissioning during Q2FY27
  • Established technology partnerships with:
  • Jiangsu GTAKE (For Motor Control units)
  • Landworld Technology (For DC/DC Converters and Onboard & offboard chargers)
  • Advanced Electric Machines (For REM free Motors)

Sterling Tech-Mobility Limited (STML) Progress:

  • Serial production for HVDC contactor business progressing as planned
  • Supplies expected to commence during July-August 2026
  • Outsourcing/Export Agreement signed with GLVAC for overseas markets
  • Additional revenue opportunities in North America being explored

Operational Metrics

  • STL serves leading OEM customers across automotive segment
  • Aftermarket presence with 100+ distributors pan-India
  • SEM has regular supplies to more than 20 customers with trials/validation ongoing for 33 customers
  • STML has 7 customer program wins with supplies to commence from Q2FY27 onwards

Forward-Looking Statements

The presentation contains forward-looking statements about the company's expectations regarding future performance, growth opportunities, and market positioning. These statements are subject to risks and uncertainties, and actual results may differ materially.